In October 2021, the Canadian Securities Administrators (CSA) published the Proposed National Instrument NI 51-107 Disclosure of Climate-related Matters (the Proposed National Instrument) for comment.

Before publishing the Proposed National Instrument, CSA staff noted a growing consensus towards climate-related disclosure, as well as widespread market acceptance, based on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). The Proposed National Instrument, which would introduce climate-related disclosure requirements for reporting issuers (other than investment funds), is also modelled on the TCFD recommendations.

Since that time, international developments have given CSA staff pause to consider the impact of these events and how they may impact the development of climate change disclosure in Canada. These international developments include:

  • In March 2022, the United States Securities and Exchange Commission (SEC) proposed amendments to rules that would require registrants to provide certain climate-related information in their registration statements and annual reports.
  • In November 2021, the International Sustainability Standards Board (ISSB) published a proposed general standard for sustainability disclosure.

While the CSA, SEC, and ISSB proposals are all based on TCFD recommendations, there are some substantial differences between them. CSA staff continue to monitor the evolution of these proposals as well as conduct a detailed comparison between them.

Additionally, the CSA is currently revisiting letters it received on the Proposed National Instrument that included feedback on the two international proposals, as well as reviewing Canadian stakeholder feedback that was submitted directly to the SEC and ISSB.

National Instrument 51-107 Disclosure of Climate-related Matters is available for download from the websites of the participating CSA jurisdictions.

For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.

This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.